Which of the Following Is an Underlying Principle of the Portfolio

question 89

Multiple Choice

Which of the following is an underlying principle of the portfolio theory?

• A)Both systematic and unsystematic risk can be eliminated through diversification.
• B)Portfolio owners are concerned with the performance of the entire portfolio rather than that of the individual stocks in it.
• C)The lower the returns on a stock are, the higher is its risk.
• D)A stock's risk is independent of its return.

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